Business Tax – Inventory machinery

MACHINERY INDUSTRY INVENTORY OF ECONOMIC ACTIVITIES AND TAX

Recently a client asked us to carry out a detailed inventory of the main and auxiliary equipment used in the production plant.

It is very common in industries that are used in their production process lot of the same or similar machines, acquisition and not inventory update. This situation over time results in lack of production capacity in the industry.

Os benefits of having updated inventory of machinery could be:

• Performing maintenance plans consistent with reality.
• Destruction or irreparable scrapping of those units and obsolete, resulting in a production plant neat and clean.
• Identification of all units causes flexibility and accuracy at the time of changes in product features and production planning.
• Justification before the appropriate bodies of installed capacity in machinery.

It is known that different tax collectors are performing data updates installed capacity in the manufacturing process to update the Business Tax.

What elements should be considered in the inventory provided to collectors?

We have to go to Royal Decree 1175/1990, of 28 of September, fixing the rates and instruction Tax Economic Activities approved. Third Rule in Chapter 14th paragraph 1 A sub-paragraph):

• Taxable installed capacity is considered the result of the sum of the nominal powers of the affects energy elements to industrial equipment, electrical or mechanical nature.
• They will not be, so, computable powers dedicated to heating elements, lighting, Conditioning, pollution control facilities, Personnel lifts, social services, sanitary and, in general, those who are not directly assigned to production, including those intended for processing and correction of electricity. They will not be considered for this purpose furnaces and boilers running based solid fuel, liquid or gaseous.
• Fiscal power according to which quotas will be obtained industry will be the mathematical result of reducing the entire kilowatts installed capacity computable, using, if, equivalence 1 CV = 0,736 Kw
• The installed power testbed, testing platforms and the like are calculated by the 10 by 100 the actual installed capacity.
• Backup equipment manufacturing facilities are not tax element when declared as such to the Tax Administration.